Federal authorities are currently investigating whether former Representative George Santos was involved in insider trading. This investigation stems from Santos allegedly betting on a prediction market about his attendance at President Trump’s State of the Union address, which took place in late February.

Mr. Santos’s announcement on social media, stating he planned to attend, created a stir among online bettors on the prediction market Kalshi, who were wagering on the guest list. His absence from the speech raised questions, and Kalshi noted that Santos had bet against his own attendance before the event. This was shared by a person familiar with the situation, who requested anonymity due to the ongoing investigation.

Kalshi has reported the matter to the Justice Department and the Commodity Futures Trading Commission (CFTC). The CFTC is a financial regulator responsible for overseeing prediction markets. They are currently investigating Mr. Santos’s actions. Another anonymous source confirmed that the Justice Department’s involvement status remains unclear.

Mr. Santos has yet to reply to requests for comment regarding the investigation.

This situation unfolds as the Trump administration faces pressure to demonstrate its ability to regulate insider trading and other potential misconduct within the rapidly expanding and profitable prediction markets. Kalshi, alongside other prediction market companies, has ties to the president’s business interests. Notably, early last year, the company appointed Donald Trump Jr., the president’s eldest son, as a “strategic advisor.”